what's app to one of the other services all right. thank you. julie boorstin with that news alert on facebook. what a day on the markets. the dow is up by 70 points thanks for watching. "closing bell" starts right now. welcome to the closing well. i'm morgan brennan it has been a residualer coaster day on wall street weak services data that sent the market plunging for the third straight day then the bulls charged back in, sending stocks back into the green. the dow is up 76 points. s&p is up just about 18 points where will the market end at the close? we have 59 minutes to find out >> i'm david faber in for wilfred frost. let's look what's driving the action a weak read on services sector that number along with some other weak data pushed the

probability an october fed rate to 90% technology leading today's come back nasdaq is higher up about 1%. we got our team of reporters standing by. they will break down today's whipsaw market action. first joining us is stephanie link interesting day we've had here we were on together at 10:00 market immediately went down i called almost a percent. here we are back up. what do you make of it >> it's a wild day it's not over. i think it's bad news is good news the data was soft. both ism reports were soft we'll have to see what the nonfarm payroll will be tomorrow it will be on the softer side. what does that mean? does the fed cut 60% chance for december cut, and speculation that maybe trump gets more desperate to get a deal done, trade deal done

that's why we rallied. this is a pepsi market pepsi -- >> i like that >> it really is. truly. they reported a good number, inline revenues. market wants 4.5% steady organic growth a steady yield paying 25 times. i can't do that because it's too rich for me. that's what this market is it's been that way all year long >> we have seen the sell off since the start of the move october are there opportunities in places where you've been buying >> we talked about barbell can't be all in on cyclicals if you weren't in cyclicals and in growth you lagged i am starting to buy some of the growth stocks that have pulled back i'm looking at facebook, at google i'm looking at some names on the growth side that have pulled

back enough because i own a lot of cyclicals >> we got a lot more with stephanie. let's drill one on today's big moves. bob pisani are tracking it and bertha coombs has more bob, we'll start with more >> a 400-point move in a short period of time therl morning three factors moved. number one oversold conditions that was down 1,200 points at one point. rate cut odds improve. 80% rate cut chances this mop 50% for the move december. finally some trade talk from the president. he was saying president xi wants to make a deal just take a look at the dow. a rare thing when you see the dow move 1,200 points in three days that's what happened we're well off those lows. those are oversold conditions. we have sectors here on a short

term basis haven't been this oversold in many months. transportation stocks. metals and mining stocks bank stocks. parts of the communication sector way oversold finally i keep watching the big consumer winners this year watch all those names, home depots, mcdonald's, costcos and nikes for how they are holding up today a good day for them. guys, back to you. let's turn to the nasdaq the leader among the major averages up almost 1%. bertha coombs has a look >> we're seeing a broad base rebound. software names are leading that sector but it's still down 1% for the week communications in biotech were off 1% while chips have broken even for the week. as far as large cap tech that was what's really moving things higher today facebook not with standing all of the headlines got that new threads that some people say might be a snap copier or

killer and the call from the attorney general barr not to encrypt across all of their messages, it's a stand out today and really helping to move things higher meantime you take a look at some of the ipos that have been hit so hard. they are bouncing today. crowd strike is a real stand out. for livongo they are moving higher >> we got a key reading of the services sector that came in at a three year low steve liesman has more >> service index came in weaker than expected prompting more fears of an economic slow down the service sector have surprised to the down side they both now been declining since late last year and both now have mitt multi-year loss with no sense of a bottom.

neither survey in the range where we signal a recession. jobs compartment of both surveys has been weakening some have taken into account jobs report. americans picking up on this weakness attitude towards the economy take a shortstop downturn cnbc, all american economic survey 41% pessimistic about the state of economy and the future. other key indicators are down 36% believe their wages will go up lowest since 2016. 35% say now is a good time to invest in stocks lowest in three years. 22% say the economy will improve. first time, foshlgs in the polls conducted during trump presidency pessimist out number optimists. >> stephanie, when you see an ism nonmanufacturing number coming week, last time we saw contraction data back in 2016

does this feel similar or does it feel different like it could actually settle in and become something that hits the broader economy more deeply >> i'm disappointed in it for sure but i go back to the retail sales number that we got in the beginning of september that was almost at 7% core number on an annualized basis that is a -- that was the best number since 2014 and the consumer is what is so important. i'm concerned that the services ism coming down, it's not a contraction and you have housing, auto sales. so the consumer is still fine. there's a rush to say the consumer will roll over and die and i don't see that as long as this data points come in especially jobs, initial claims not nonfarm payroll because that's backward look and initial claims are flat. for me to get worried about the consumer that number has to go up 15% to 20% and we're nowhere near that. i'm betting on the consumer.

i have a pause on the data but positive on the consumer which is the bulk of the economy >> let's talk more about today's market action. joining me now is jeremy segal and richard bern tstein. fundamentals are deteriorating right now. has this market already accounted for it >> i don't the think so, david i think if you look at analyst estimate, bottom up estimates for s&p 500 you'll find that they basically haven't come down very much at all and that's an important point because analysts have never, never forecasted a profit recession from a bottom up point of view what you're starting to see is you're starting to see small cap stocks, earning estimates s ero. that's been reflected in small and mids but analysts believe that large

caps are immune and i think we'll find that's a mistake. >> professor segal what do you think about this market right now? >> first, it shows that the fed has to do more work. you know, inversion has come back i look at the 90-day treasury bill and the 10 year bond. it's inverted. the fed funds rate in the ten year is inverted again even if the fed drops 25 basis points, the fed funds rate is above the ten year it should not be that high so i think it's sort of a strange market, the data is bad enough so now people think the fed will come to our rescue, hooray i'm going to buy stocks. you know, this quarter looks like one and a half percent. some analysts are marking this quarter down, and i say, i'm talking the third quarter that we just finished down to just

1% so we have suffered a slow down. the fed does have to move. i thought it should move 50 basis points before and even though there's a lot of counting down thomass on the fomc saying everything is fine, i think a lot of this underlying data doesn't say so i also will be awaiting tomorrow's payroll data. >> so, richard what to make of a market where you have fundamentals deteriorating and as jeremy just sort of pointed out you got a lot of people anticipating a fed move is the reason why you want to buy is that typically a good time to actually think about buying? >> david, you get a little tug-of-war here between the deterioration of fundamentals and the fed easing generally in the very late stages of a cycle or the very, very early stages, the fundamentals deteriorate too rapidly relative to the fed and i think that's kind of what jeremy was just describing you got some fundamentals that are

deteriorating but you got hesitancy on the fed to still ease that's perfectly normal. that's what the fed goes through every cycle. it's one of the reasons i would argue the fed is a lagging indicator way behind the markets and yield curve. the yield curve is telling you that there's still more weakness ahead. >> stephanie, we've had so many people come on our air and say oh, there's no alternative that's what is categorizing this market that will fuel stocks. >> our fundamentals even though we're growing slower, 1.5%, sub2% growth there's still some earnings power there i still believe that their margin story still has upside. that's pretty controversial. most people think margins especially in the states -- >> why do you believe that >> these companies have done an amazing job of restructuring and will don't restructure they are faster at making change and adapting change.

they are much more focused on profitability as opposed to european companies oh, my gosh their margins are half of ours but they can't get them up that much and not as active in doing so so i still think that there's good earnings power. might be slower but i don't see a profits recession here >> professor, how much is all of the drama that's playing out in d.c. right now starting to weigh on this market if at all >> i don't think the impeachment proceedings are weighing on the market i think what market want from the trump administration is a trade deal and actually there's some analysts that think there might be more likely now with the data coming in weaker, he wants to rescue the stock market he might go in for a trade deal. the market want as trade deal number one number two, they don't want the fed to lag too far behind so they want an october 30 rate cut

at least once. i think with those two features we can stabilize this market the dividend yield popped above two. you can't get two any more in the fixed income market. i think equities really look for the long run attractive but certainly have these challenges in the short run coming up >> there is no alternative again, morgan. guys, thanks to you both jeremy siegel and richard bernstein. netflix down 30% yeah in the last three months and barely up for the year new note from bank of america says upcoming earns could be a make-or-break moment for the company. we'll take a closer look at those expectations next. >> important read on the consumer hitting after the bell when costco reports results. we'll tell you what you need to tcfrhat release. stay with us "closing bell" will be right back and experience adventure in unexpected places...

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welcome back you can see there is the dow -- >> your favorite >> my favorite up 65 points with 44 minutes to go in the trading session. >> let's get a check on some individual "market movers"

shares of go proare plunging the company cutting its second half sales forecast due the to production delays with the hero 8 cameras. that stock taking it on the chin right now. it's down 19.5%. kroger is laying off hundreds of employees. grocer says job cuts are part of valuation of middle management roles and team structure shares of kroger are down around 10% year-to-date as it faces increased competition from discount growsers like aldi and walmart. >> we have 43 minutes or so left in the trading day let's sends it over to mike santoli. >> 30% chance of rain. that's pretty much what wall street is saying about one very popular consumer stock then clouds and silver lienver . low pressure system. the market is showing pressure is being let out of the earnings

expectations then the butterfly effect. look at global and u.s. interplay there of economic force. first of all 30% chance of rain. take a look at chart of netflix against other media peers in the last year. netflix, walt disney, come kacht our parent company as well as viacom chose the one year view netflix and viacom they are remotely same parts of the industry viacom traditional cable company. netflix is just exactly how much of its specialness, its premium, what's the valve its head start in the streaming world obviously disney and comcast a hybrid play on broadband as well as media looking over five years, same four stocks over five years. you see exactly how much of a lead in commit netflix built up over everybody how much is the head start, how much did wall street give it

credit foirn advance look at the analysts consensus now on netflix so the 30% refers to 30% of analysts do not currently recommend it that's actually relatively steady over the last year. what has happened is in red this is the consees sues price target implies 50% upside what that suggests to me there's a lot of room for that to start coming down if you have sentiment moderate depending how they report earnings arguably a little bit of air underneath those expectations. on the other hand, look at this other time you had 50% implied netflix did catch up, guys >> mike, first of all, i got the theme with your charts today and i appreciate it given the fact -- >> you should explain it to david in the break >> but i appreciate the fact in the past 24 hours you've gone from 90% fahrenheit here in new

york city down to 60 i wonder what it will look like after the next couple of months and more services come online and how pricing will factor into this especially when you see that netflix has to cut prices >> market is implying price is capped at best for netflix right now. perhaps domestic subgroup is closer to saturation maybe a little early to make that call. >> this was a cold stock growing double digits for many years. easy to like it and ignore the valuation. now growth is questioned you have tons of competition you have pricing questions if you look at comcast and disney, they've rolled over too. numbers are coming down because these companies have to aggressively invest. >> some of the multiples are

very low comcast had a pretty nice move recently still around 44. >> comcast and disney did well >> the larger issue is everybody owns their contents. how much more do they have to spend. they have done a good job creating their orjs. when disney came out in april that was a key moment and we're still waiting to hear from warner brothers, hbo max where that will be priced and everything else. >> tough space >> yes suddenly more difficult space moments ago president trump suggested big pharmaceutical companies could be behind the house impeachment probe. >> they come at you from all different sides. i wouldn't be surprised if the hoax didn't come a little bit from some of the people that we're taking on. they are very powerful spend a lot of money spend more money than any other group in the world, actually, in

terms of lob jig and lob jig abilities, i wouldn't be surprised if some of the nonsense that we have to go through, i go through, wouldn't be surprised if was from some of these industries like pharmaceuticals. >> wow meg terrell is here. pharma is the larger spending wise >> they spent $27.5 million in 2018 it's an incredibly powerful lobby. it's interesting he is suggesting pharma may have something to do with this. last week the impeachment inquiry heated up analysts talked about how investors were saying maybe this will take some attention off the pressure to lower drug prices. maybe the administration won't be able to push things through on drug prices as they've been talking about doing just because everybody's attention will be elsewhere.

interestingly later in that same sort of thought trump talked about how everything they do on big pharma results in pharma stock going up stocks going up. we have a chart here looking back to trump's election, pharma has underformed. bo tech is up 13% compared with s&p 36%. since november 2016. the stock has gone up but not as much as the broader market the trump administration hasn't been successful in pushing through pricing reforms. people are talking about the impeachment inquiry will take pressure off the space >> pfizer never recovered from the mylan deal >> as elizabeth warren's potential for becoming the democratic nominee has increased one would expect pharma would not be getting stronger either given her proposals. >> that's a great point.

jeffries has tracked how elizabeth warren has done versus the performance of the xlv they perform inversely as elizabeth warren seems to do better against joe biden, drug stocks and health care stocks do worse because the industry is afraid of what she might do if she's elected. >> thank you is there anything in health care you do find attractive right now wean all this political it's hard i own a little bit of united health care. i would love to bit. i want to buy quality on sale. with this overhang you have time in terms of pharma and biotech it's very difficult. they should have been buying companies for so long. they have the cash flow. they just haven't. they don't have the growth now they are just yield plays if you well nothing wrong with that. you have to know what you own.

i don't want to own something library that >> up next airline stocks getting hit hard over the past 24 hours really weighing on the dow transports now one firm is out with a bearish note on delta. we'll get the "word on the street". >> big interview coming up tomorrow on the close bell an exclusive sit down with the cleveland fed president loretta mester that's at 4:00 p.m. eastern right here on the close bell we'll be right back.

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so servicenow put your workflows imm-hm.cloud, huh? your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

>> welcome back. time now to get the "word on the street". he's bullish on a pair of defense stocks the firm upgrading raytheon to outperform raising that price target to $230 a share from $188 you can see both of those stocks are trading up slightly. credit suisse saying the market is under appreciating the value and pegs the raytheon upgrade to the defense company's proposed merger >> they are getting together buckingham downgrading delta to neutral and lowers fries target to $58 the firm cites a challenging cost outlook

dropbox is its favorite stock. these different names is there one that looks attractive to you or several? >> united technology is very interesting and you'll like raytheon if you like united airlines technologies. i like their deals i think you'll see margin upside as well. you have synergies from the transaction and spin this story gets complicated as a result some pms are shying away until it gets more simple. you want to buy now. it's a good story. >> pretty amazing because we've seen aerospace and defense names sell off aerospace side you can make the argument around slowing global economic growth and their ties to china, et cetera. defense names getting hit hard has surprised me >> they are kind of tied newspaper to the growth versus

value trade. they actually roll over when growth rolls over and held up remarkably well up until that rotation they still have a great future ahead. i actually like harris a lot again merger that came together and a lot of synergies >> we got 30 minutes left to go here right now the dow is up 59 points here are the three things that are driving the action today a key reading of the services sector coming in at the weakest level in three years that is pushing the probability of an october fed rate to 90% and tech leading to today's come back with the nasdaq higher by just under 1%. time now for cnbc news update with sue herera >> here's what's happening at this hour, everyone. vehicles believed to be carrying a north korean delegation were seen leaving stockholm airport today. north korean and u.s. officials are due to meet on saturday at

an undisclosed location to restart diplomatic talks on how to end the north korean crisis >> senator bernie sanders is still being treated at a las vegas hospital but that he's up and moving about they expect he'll be discharged before the end of the weekend. a spokeswoman said he'll participate in the october 15th democratic presidential debate the consumer products safety commission announcing two separate recalls for bedroom dressers this due to the possibility of them being able to tip over. first is the belmont four drawer dresser sold at k-mart second involves the three drawer dresser sold online. act are robert de niro trading duelling lawsuits. trace robinson suing him in court saying he subjected her to sexist and harassing comments. he sued her for $6 million for

misappropriate money you're up to date. that's the news update this hour morgan, back downtown to you shares of snap are sinking after facebook announced a new messaging app. >> reporter: facebook is launching what its calling threads by instagram a new messaging app which sent facebook shares higher while snap shares have sunk. the messaging app puts the camera front and center and designed for communicating with users close friends from instagram. in addition to sharing photos and videos users can share their location, and their status now this is just the latest example of facebook and instagram borrowing from snap's most popular features including stories and augmented reality epilepsies these features helping to drive instagram to half a billion of daily active users nearly double

snap's daily active users. some analysts are starting to weigh in brent phil of jeffries say they believe this is an increment al feature. we reached out to snap to see if they had any comment on facebook copying one of their features. they said no comment on this one. back over to you >> julia, the timing of this just the fact that facebook sunday as much antitrust scrutiny and launching another app that's so similar to their top competitor anything to be made on this? >> reporter: they've been working on this for quite some time this is something they were trying out in beta

what facebook would say when asked about, you know, copying some of snap's features is they are simply using these technologies that are emerging like augmented reality for lenses they are copying the ideas but that's how business works. they are not replacing them or squash snap. they are maybe inspired by some of their features. but they say that's not necessarily a bad thing. snap has been going hard at facebook with this ad campaign how snap is about real friends billboards up around los angeles talking about how snap is connecting those real friendships and what they are poking fun at is on facebook and instagram you have so many friends those connections are not really authentic any more. >> okay. julia, thank you julie boorstin in los angeles. coming up your last chance trade. stephanie is picking up one stock that's up 30%. in just a few minutes we'll take you inside the market zone.

our commercial run down of the biggest stories of the day that matter most to your money. and as we head to break here's a quick check on bonds treasury yields falling athe back of the weak ism number. two year note at its lowest level in more than two years "closing bell" will be right back

we got 38, i don't know, 22 minutes. let's send it over to mike santoli. he has his dashboard >> so this one is about clouds and silver linings first look at the set up of a one year chart of the s&p 500. a lot of sideways. take a look. 2925 on the s&p. one year ago, how many times did we think perhaps we were going for a real break out a couple of times. at least three you can draw three examples of where we might have had topping action that's why a lot of investors

are on edge what the underlying trends is. look at the update of american association of individual investors. it comes out every thursday. bears versus bulls bears in orange. that shot up to 38%. bulls down to 21 people are getting concerned this is not a clear indication you want bears up to 50% before you say maybe the market is getting washed out other indicators like put ratios in options right now the market short term oversold but not to a point where it looks like it has to go higher for sentiment reasons >> i don't know how he does that every single day >> it's amazing. >> incredible. >> i repeat a lot of stuff >> still you have to come up with these catchy categories i can barely remember my name. >> you're going to make him blush. >> stephanie, you mentioned value a number of times already today. i know that's where you focus.

there's been a bit of a shift. we talked about it have you benefitted from that? is it for real do you expect it to continue is it going to be a fake >> i had a great september die. all of our value managers within our organization did we definitely benefitted it's hard to tell, david, because if you're going to only grow 1.5% in gdp, maybe call it 2%, growth is hard to find growth is scarce you want growth. at the same time they are pretty crowd and value really is value right now. it is very, very cheap relative to growth so i think there are opportunities. it's not going to take much, in other words, for value to see a pop. if we got any kind of detente on trade, absolutely value, we'll see that rotation. but for the long term probably growth is where it's at. that's why i'm trying to buy growth at a reasonable face. >> a facebook or all emfa bet. we can argue its value too

>> that's my version of buying value. not really value -- 17 times growing 25% down 12% from its highs. by the way they have the money to spend on these new initiatives. >> up next last chance trade >> after the bell we'll get earnings results from costco that stock is up 40% year-to-date we'll break the numbers and get instant analysis that's coming up "closing bell" will be right back [leaf blower]

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we got 16 minutes left to go here in what has been an incredibly volatile trading session. what's your last trade >> air products. this is my definition of quality on sale. it's up 30% but down 10% from its highs. it has the best management in the industry trades to a discount they will grow earnings double digits they have pricing power.

in the process of deploying $17 billion in projects around the world. mainly l and g products which is quite hot. buying back stock. sharing out their dividends. i like this story especially with the pull back down ten. >> any exposure the to slowing economic growth? do you see things like natural gas go weak sneer there's some exposure and that's why the stock has pulled back. they have pricing power and this huge balance sheet and huge cash board to do these projects l and g is not going away. you know that better than anyone this story is somewhat insulated and a little more defensive within the industrials, chemicals, memorial space. >> all right >> coming up tomorrow on the show an exclusive interview with loretta mester president of the cleveland fed she will discuss how market volatility could be impacting fed's decisions as we move into the fourth quarter that's tomorrow at 4:00 p.m.

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you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad, because you have e*trade, whose tech helps you understand the risk and reward potential on an options trade it's a paste. it's not liquid or a gel. and even explore what-if scenarios. where's gate 87? don't get mad. get e*trade and start trading today. we have 11 minutes left in this trading day and right now the dow is hanging on to gains it's up about 37 points. s&p is also up about 14 points, 2901 is your level we're now in the close bell market zone.

commercial free coverage of all the action going into the close. we'll tell you everything an investor needs to know to make the right types of trades in the final minutes and break down the market action after the final bell >> we'll see big movers in the dow. s&p 500. and the nasdaq constantly changing and updating on the right side of your screen got it right cnbc senior market commentator mark santoli will comment. we have stephanie link here. we start today with another piece of data that's adding to investor fears of the slow down in the overall economy today the ism services survey came in at 52.6. that means things are expanding. but the weakest reading we've seen in three years. this comes after ism manufacturing data came in at a ten year low and that was earlier this week. maybe an interesting trading day.

>> yeah. >> in terms of the initial reaction to that number which was down, the ten year was close to one five. you've been talking a bit about this it rebounded >> that's how the market followed nonmanufacturing is not one investors focus on but are we in a recession debate grew to such a crescendo, seen as a firebreak if we're staying in expansion zone with the biggest segment of the economy maybe we can relax ten year lead goes to one five, one five one it's obviously pretty tentative given that markets have been pulling back in the afternoon. >> tesla shares are falling today after the company reported delivery numbers for the third quarter that were short of expectations phil lebeau has more on this story. >> reporter: it's not that this was a huge miss in deliveries for third quarter enough of one

that makes people question whether or not we're seeing a slow down in demand for all vehicles from tesla not just the model 3. bulk of the deliveries yesterday were model 3 and what to expect in the infuriate quarter from tesla they have some key hurdles they have to clear in fourth quarter that investors will fob cussed on if they will make their guidance they have to boost their deliveries in their fourth quarter by 8%. they begin china production especially for the model 3 over there. that will help also can they grow their automotive gross margins when they report earnings in early november if they are up people are likely to forgive them for falling short on deliveries this is a stock that's down 30% since the beginning of the year. guys, back to you. >> how much is hinging on china and how quickly, i guess, can tesla get that factory up and running? >> not a ton is resting on china in the fourth quarter because

they are just beginning deliveries there people will say we don't expect a lot in the fourth quarter. having said that, china is the key to future. world's largest auto market. largest athletic trick vehicle market if they can have a clean launch in shanghai that will go a long ways for the tesla bulls to say we're on the right path. >> pepsico and consolidation are moving frank has those numbers. >> reporter: strong consumer demand led to the top and bottom line for pepsi trading close to their all time high gatorade posting highs, single digit growth pepsi cfo earlier today saying the consumer is actually doing just fine. here's why he said so. north american sales increasing

across the board frito lay up 5.5%. international sales in europe, africa and asia rising 5% or more constellation shares falling 5% below it's 100 day moving average and that's despite the corona maker having 5% it's core business of beer and sales growth of 5.3% investors rattled by continued losses for its canopy investment that reduced eps by 20 cents this quarter back over to you >> we'll keep stick with the consumer theme herer and we'll get another read on that key consumer when costco reports earnings after the bell. >> reporter: costco a key be bellweth bellwether that stock has been a big outperformer returning more than double that of the s&p as it's one of the few retailers with

stand many of the macro headwinds. costco has also been focused on expanding overseas remember that video from china with crowds clamoring to get into the store we'll be looking for color on how their international expansion is going, what they see with the consumer and the effects of the trade war >> thank you stephanie, we started the show off by you saying it felt like a pepsi-type market to you your take on those earnings and what you're looking for after the bell with costco >> pepsi of great. no beef with it. they did better on the bottom line i thought the revenue was in line 4.5% organic growth is respectable. they are giving a nice dividend at 2.5%. that's what this market wants. i have a hard time paying 25 times earnings but wait a second costco trades at 30 times an earnings. i own this stock every single time i sold it i

regretted because it goes up and up because it has a moot. they have a great game plan in term of growing digital, private label, membership fee, recurring revenue. that's what's unique about costco i'm willing to hold on to this one but i'm nervous because it's up 42% if it pulls back i'm inclined to buy it >> still in this very clean looking two year, multi-year health trend it's one of the anointed retailers mega scale you can own. that's the way the market has treated costco, walmart and home depot essentially as the ones insulated from everything else >> especially looking at what kroger has to do today quite the opposite >> four minutes left until the close and right now stocks are hanging on to gains in what's been another volatile session. the dow is climbing higher back towards its high of the day. it's about 90 points if you're just joining us you might notice that your screen

looks a little different we launched the market zone where we'll bring you uninterrupted commercial free coverage up to and after the close bell at the bottom of your screen you can see a preview of the next few stories we're covering to guide you through the close. wow. a lot going on there a lot going on here as we couldn't you down the close bell three minutes to go. >> your in the zone? >> i'm all in the zone all in i'm mesmerized and the colors so pretty. mike santoli is here he has the internals of this market >> a quick look at stocks. solid positive vix has eased back from below the low 20s. a little bit of tension. we're clinched up ahead of those jobs numbers brent 17 to 11 to the positive

to the upside we're down very comprehensive losses. >> stephanie >> october historically a very volatile month. what do you expect to see this time around? >> i think you'll continue to see volatility we have china trade talks next week that's the peak of everything. then earnings. i cannot wait to hear from earnings and hear how companies are doing and forward guidance i don't expect to it being a great. i don't expect to see negative earnings growth in the quarter it will be slorks it will be sluggish i can't believe how many people obsessed about ism nonmanufacturing and obsessed by the nonfarm payroll. nonfarm payroll is a backward looking indicator. let's look at initial claims while it's volatile smile out. flat year-over-year. >> we goss less than two minutes left to go the low for the dow had been down 335 points. the high is up more than 100 right now at about 101 points.

you're watching the market zone. let's sends it over to rick santelli for a check on bonds. >> the down side unlike stocks look at a two year note yield. fresh 25 month low closes in store. the old one was 143. look at three month chart. difference between our yields and european ten year. s&p seemed to be tracking that we want to watch that growth spread dollar index had a nice come back closed down a bit but less than half a cent. per that, a lot of greenon the screen up over 1%. >> reporter: we're seeing a lot of that fueled by tech chips sector very strong now flat for the week and we're seeing biotech bounce back a lot of those names stretching down 25% year-to-date. over to bob. >> reporter: 50-point move in the high to low for the s&p. second day in a row that happened remarkable week.

130-point move in the s&p over a three day per. growth is back again and that's a big, big thing here. taiwan semis nice move up. mcdonald arbitration american power doing well going into the close. there's the close bell dow jones industrials average up near the highs of today. better than a 400-point move from the high to the low welcome to the "closing bell". i'm david faber in for wilfred frost. >> i'm morgan brennan along with mike san collie. we're in the market zone you can see the today's action on the right side of the screen. stories still coming up at the bottom of your screen. >> here's how we finished the day. dow, s&p, nasdaq all in positive territory. dow least of those performing.

nasdaq having a very strong day. significant rebounds for all the major averages from what had been the loss we saw, somewhere around 10:30 or so this morning. about a half hour after we got that ism nonmanufacturing number that was at least conceivably disappointing. >> we finished right the at the high of the day. the low for the dow had been down 335 we finished up at 123 which gives you a sense of just how whipsaw the action was similar story for the s&p. a group, a commodity i should say an asset class that remained under pressure today was crude oil. brent and wti both finishing the day down fractionally and actually if you look back over the past week wti is down 7% and brent is down about 7% pretty incredible to think it was less than three weeks ago we saw those attacks in saudi arabia and it really speaks to the concerns out there about global growth and the impact that it's having on demand for

things like oil. >> it was quick. only a couple of weeks ago everybody was talking so much about oil and how long it remain elevated something else we were talking a lot about is a tough ipo market and as well those companies that have gone public that have disappointed doesn't take long to think about this one uber 2.5% gain today in part on news the company is not moving to use its vast pool of gig workers in other ways, to direct them to temporary jobs and potentially create a new revenue stream there and that did seem the to excite investors a bit given it did outperform the s&p significantly today. >> joining us to talk about the market day, president of bianco research and the stephanie link is still with us but first mike santoli let's start with you >> i think you had really such a welling up of concern of every data point coming in to the day. a stretch to the down side

when you have something like a jobs report coming up, the market wants to pull itself into a neutral position ahead of that and that's what you saw through the day and especially at the close, where you know, traders don't want to lean too far in one direction. we were down the first two days of the quarter u.s. is back in the august range in the market and whether it's a soft landing or the fed can head off something worse or not >> stephanie, why the turn around in equities today >> we talk about bad news being good news earlier. the data hasn't been that good this week. and i don't expect the data tomorrow to be that great as well remember, though, the ism is a sentiment indicator. how can you not expect it to roll over a little bit speculation of that maybe this for the trade talks to get something done not a huge deal but even a detente would be pretty good then, again, the probabilities

of the fed going after today is 90% in october and 60% in december and that seemed to appease investors. we got way over sold i don't know if i trust this bounce and i'm not doing very much i have a little bit of value little bit of growth that's way i'm playing it at this point >> speak of rates let's get to jim bianco you had a warning for investors who might be looking for higher yields on treasure i that could cause a steep sell off the bond move has been an interesting one. >> it definitely has look, if you look at the to 7 economies around the world, you look at all their interest rates, over 200 interest rates, highest interest rate right now is the 30 year treasury is 2.03. everything else is 1.0 or negative if you're reaching for yield and want to know in 2019 what is a high yield it's 2% what is a bone crushing high yield? go back a year ago when the ten

year hit 325 when he a 20% correction in the stock market people have to realize in this world of no inflation thank you technology, big savings rates because we're all getting older and there's a savings front ben bernanke coining that term that now two is a high yield, three is bone crushing we won't see four or five unless there's real problems in the world and that's why i said if you're waiting for four or five you won't like it if the circumstances will cause that to happen stock markets will have a real problem on their hands should that ever happen >> should you be waiting for one on the ten year? is that a more realistic assumption >> one maybe less than one. no reason to think those yields will go up they will ebb and flow but the trend has been unmistakably down. we're just ten basis points away from the lows we saw in august the two year note made a new low

today. it's the world we live in right now. no inflation there's an excess demand of savings. and yields will continue to trends lower thank god they are not negative like they have in europe >> mike, once again russell 2000 small caps underformed today what does that tell us >> brief respite yesterday they outperformed in a down market same story not best position companies in terms of prereceiving profit margin just in terms of general risk appetite even large cap stocks what does the market prefer right now? great balance sheets very predictable growth and long term secular growth as opposed to cyclical. >> let's get back to bob pisani. >> trade optimism. i agree with stephanie reasons for the rally. we did have moves off the loss

but don't kid yourself banks are down four days in a row. we saw some modest rallies in some of these stocks but all of these stocks you're looking at are down 5, 5.5%. even this week with modest moves. airlines another group a lot of comments from analysts recently about cost pressures and falling demand higher labor costs that kwaupgt some of them today. they are on the weak side. energy oil is down eight days in a row right now. it was 60 bucks a week and a half ago $52 today. we did have some moves up in marathon this morning these stop, at 52 week lows bouncing off but still quite a bit of a laggard in the energy space back to you. >> important to point out with marathon you do have a couple o activists and there's a growing sense they may get what they want which is a split of the company. that has been performing well lately >> all acting horribly in the

last several months. none of these stocks are out performing on a relative basis >> stephanie, how close are you watching like weekly red count numbers which we'll get again tomorrow we saw some declines i was in midland, texas the last time we saw oil clapgs the stat that was cited for every rig that goes up it's up to direct and indirect jobs. but overall when you see the weakness in crude and the oil patch i wonder how much that is weighing on manufacturing data too. >> it certainly is and probably hit the ism numbers as well. look the rate cut has been counting down but not nearly as fast as it needs to come down. that's what oil prices are telling you. you'll don't see that. it was encouraging today even though oil was down. stocks were up they were up nicely. in a fairly defensive take

i'll be watching that. i'll watch the industrials acting a little bit better today which was surprising maybe a bit of a dead cat. there are some good stories out there, and, in fact, i just recently bought a new position in the industrial space. >> emerson is in the activists cross-hairs. we'll see if they make any progress very rough road. by the way, i misspoke bob had marathon oil up there. it's marathon petroleum that's the activist i made that mistake a couple of times. back to emerson. what do you think about something like that would you support what the activists are looking for here which is somewhat unclear but might involve them splitting some things off even though countries aren't intereste eed >> they can make a case. after david farr retired in

2021, '22. he's a good ceo. wants to create shareholder value. if nothing else he'll come up with a new restructuring plan. i firmly believe when they reiterated guidance i don't have to worry about earnings i have to worry about something good happening that they will see better profitability than what most people thought because they will make changes >> jim thank you for joining us. stephanie we're not letting you go just yet. meantime some breaking news on vaping related illnesses >> reporter: the centers for disease control has come out with a new number most updated number right now they say they are looking at 1,080 cases across 48 states 18 deaths reported from this vaping related illness those deaths are across 15 states this is an increase of about 275 cases and actually it's an increase of 275 cases since last

week the agency reports that the increase can be accounted for by both new case and reporting of previously diagnosed cases most of these cases are -- do involve thc containing products, a small number contain only nicotine products. agency officials in the past pinpointed black market products in the outbreak on this illness. however, there's been an incredible amount of regulatory scrutiny on e-cigarette company juul just earlier today juul, the ftc announced that it would be continuing an investigation into juul's marketing practices not related to the vaping illness, of course, but jewel company spokesperson said we strongly agree with the need for aggressive category wide investigation on products. we'll comply with the policy when effective this illness, there's still no cause for this vaping related

cause illness. officials say they do expect more cases to emerge in the coming weeks back to you. >> thank you for bringing us the latest on the situation. up next, we'll get a read on the consumer when costco reports quarterly results. we'll break the numbers and get instant analysis as soon as those cross. close bell wi "closing bell" will be right back obvious. sometimes, they just drop in. cme group can help you navigate risks

and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances. ♪ >> welcome back to the close bell the consumer is in sharp focus

following a slew of weak data in the u.s. this week some clues coming from earnings today as well. pepsico and constellation topping estimates before the bell for more on the state of consumer let's bring in charles o'sha. also stephanie link is still with us. julia, i'll start with you how would you gauge the health of the consumer here in the u.s. especially as the data points has been mixed >> the consumer looks to be okay job numbers we're seeing is still pretty healthy and service sector, the worrisome thing we saw today was cracks in the service sector u.s. economy is mostly a service sector the manufacturing sector is in a recession. service sector has been resilient to date. so see the loss of momentum in the service sector that's the worrisome aspect of the data >> charles, i wonder if you think that all of this talk of the possibility of a recession,

the fear of a recession, if that's something that's starting to spook the consumer, if that's a rising risk. >> it could be spooking. i don't know that the risk -- the risk equals what the consumer is thinking the consumer still has money sfoend they are still spending. we're looking at the top end of the food chain in retail and those are the biggest and most, you know, financially flexible guys, the walmart, costcos of the world, amazon. they are posting significant sales growth so i don't think the consumer is as bad off as maybe some of the data would indicate. i think the holidays will represent that >> yeah. stephanie, we had the ceo of u.p.s. on "squawk alley" earlier in the week and he gave us the take on the u.s. economy and the u.s. economy seems to hold up and was pretty optimistic about the peak holiday shipping season do we need to be taking a closer

look or, i guess, our market watchers right now discounting just how strong the holidays could be >> the holidays will be fine i think they might see lower momentum than what we've been seeing in term of retail sales trend. we talked about this last hour, core retail sales were up almost 7% that's very annualized very impressive number what julia said jobs, wages. that's also a lot of momentum behind the consumer. but i also am looking at housing. mortgage application rates the housing market is just starting to inflict. you a the to sales have not rolled over like people think. it's trading at 17 million in north america for the last five consecutive years. so i think there are pieces and pockets of the consumer that remain strong. it could weaken from here but i think this is the engine of the economy and continue to get us out of the recession talk. >> to that point, julia, in

particular, your mention of loss of momentum or cracks that perhaps we're seeing as a result or in today's report what else should we be looking for and where should we be looking? >> we need to look on the business side. the consumer will be in some sense the last one to know if we go into a recession. businesses wild see a slow down in global momentum if they stop hiring then consumer will become more cautious consortium won't lead this they are not over levered. feeling pretty good about the world. labor market is strong it's the firms that would lead this if we do slip down that road >> jim cramer had paychecks on yesterday and can't find jobs. >> very positive >> tax withholding numbers looks good it's a proxy for incomes housing is the other piece while it hasn't ben synced up.

>> the fed having some good effect we the talk about monetary policy is losing its punch it's turned housing around lower mortgage rates first positive contribution to gdp from housing in six quarters in q3. that offsets some of the weakness in manufacturing so the fed's preemptive policies are having the desire effect >> speak of employment, we're getting a number tomorrow. it's backward looking as stephanie made the point earlier but it's still important what are your expectations >> david, that's a tough one the employment numbers have been all over the map mark has a much better handle on it low unemployment has helped the consumer, obviously but also helped the retailers on one end. on the other end wages are increasing that's putting cost pressure on retailers. again it continues to tilt the balance in favor of the bigger

guys that can absorb these costs versus small guys that can't >> chashlrles, where are folks spending their money the fact that there's some strength in robustness in house. but in term of the arrest landscape, for example, where can consumers put their money to work >> it's interesting. they are putting it to work in a lot of places. you see strength across categories when you look at say a best buy, consumer electronics are still rolling along pretty well. when you look at walmart which sells the broadest mix out there, walmart is robust target is robust target's private label is driving the growth there there's all sorts of various autos as was said earlier. i covered the auto retail sector for moody's and while the sales are off a little bit, 17 million is still a big number when you go back -- this is the fifth year where we're around 17 handle and these are

stratospheric numbers. the consumer is spending in a lot of numbers >> costco earns are out. >> reporter: it is a miss on the top line for costco, company reported 47.5 billion for the fourth quarter on the bottom line they reported $2.47 per share, however that was negatively impacted by a charge of 22 cents per diluted share related the to expenses. it's unclear whether that's directly comparable with the analyst estimates of $2.54 per share but you can see costco shares selling off a bit in the after hours trading down 1.7%. back to you. >> thank you stephanie, your quick take on these numbers? >> i don't have a lot of

metrics. they did pre-announce before revenues would be up 7.1%. 5.1% core comp that's against seven five comp against last year. what i want to see is margins. you caned a just for the one time event and that looks like a beat look, i said before stock is up 42% year-to-date vulnerable for a little selling. if it sells off materially i would buy it it's a great story i don't think there's anything materially wrong here. i want to get through the margin numbers first. >> julia i'm looking at the comp number for the u.s., specifically and it looks like for the quarter it's up 6.2% which i guess goes back the to the conversation we were just having about the resilience. >> money in the consumers pockets. wage growth is rising. consumer sentiment is strong as long as they are feeling their job prospects are secure they will keep spending on discretionary things like on what costco sells.

>> one thing on the autos, top line number is misleading. lead sales have been supporting auto sales direct sales to consumers are down 2%. consumers are pulling back on the durables that's a good story. consumers have been very prudent this cycle they are not overextended on any margin that's a story that bolsters resilience >> all right thank you all for joining us and giving us some instant reaction to these costco numbers. up next we'll break down some charts. we'll see if wall street has a profit problem on its hands as investors brace for earnings season >> plus find out why falling interest rates and stock market volatility could be dolea ub bonus for the housing industry ♪ ♪ ♪

♪ ♪ ♪

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welcome back to the "closing bell". let's sends it over to mike santoli for his third dashboard. >> low pressure system the question here when look at the market how much pressure implicitly are investors putting on companies to show some earnings growth in the coming one year this is from goldman sachs this is a measure of the implied

earnings growth in the valuation of the stock market versus bonds. david over at goldman sachs keeps this what this means if you do all the math related to what a normal fair valuation would be of stocks versus bonds and say what is the market now implying? it's implying low single digits earnings growth right now for the future of five years that's a modest expectation. came way down here from let's say going back towards last year that's probably positive right now the published forecast for next year is up towards 10%. that implies there's some room for estimates to come down the other observation is the market was really cheap in here relative to what earnings ended up doing so basically this was your opportunity to really get great forward returns because the market was under estimating what companies can do and now more of an even bet right now. at least it tells you that the market is not really pricing in tremendous acceleration in growth from here, guys

>> really puts it in perspective. david is the s&p and now the dow for the conversation this morning. >> yes >> mike santoli thank you. up next we'll discuss how investors can protechnicality their portfolio amid among all this market volatility >> tomorrow don't mess exclusive interview on the economy, the out look for interest rates, who knows where else they will go wh wreene' joined by the cleveland fed president loretta mester brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero

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servicenow. works for you. welcome back it is time now for cnbc news update with sue herera >> hello, everyone here's what's happening at this hour a lawyer involved in the college admissions scandal will serve time gordon kaplan was sentenced to one monetary prison for bribing a college counselor to get his daughter in college. he paid the counselor $75,000 to allow his daughter to cheat on the acts he'll serve one year of house arrest, pay a $50,000 and poorm 250 hours of community service melania trump traveling to wyoming to meet with scouts. at a conference in

washington on enforcing the nation's securities laws, attorney general william barr began by skbrojoking about his n travels. >> i was out touring about a state yesterday and all day people were yelling questions at me i only answered one? what country are you going to next mr. barr? i said greenland >> you are up to date. that's the news update this hour i'll send it back downtown to you david. >> i got it. stocks, thank you, sue stocks having a roller coaster week dow finished by 123 points sector lost by more than 800 points between tuesday and wednesday session. for more let's bring in victor jones, former director of trading and operations at td ameritrade nice to have you, victor what do you make of this market right now and what are you

seeing amongst your customer base >> the rally was impressive. but if you take equity prices out of the equation you look at other asset classes, it kind of seems like the market is still pricing in a continuation of global slow down if you the take a look at the ten year at 1.6%, crude off 30% for the year, copper down 8% and gold up 25%, i mean it's hard not to think about what could potentially happen with the reversal in the economic cycle and we've been helping our younger investors to help understand they tend to have lower cash allocations what that risk concept means and how to utilize higher cash allocation during these paerds of time. >> tell me more about dow. it's commission free online broker you recently started it up how is it different from what's out there in the marketplace

>> great question. i want to address both of those points when we started out over a year ago we believed paying commission to trade stock is about as common as paying for a land line telephone. it wasn't going be the case. building a firm where your proposition was free commission trading. we're a commission free mobile first investing application but beyond that we're all about context. we believe if you provide access to the markets, it's your responsibility to provide context. we provide an app filled with smart ideas to help people with better decision make and risk-reward trade ups in the marketplace. >> we saw this move in the marketplace this week. it started with charles schwab cutting commission down to zero. td ameritrade your old employer following suit how do you compete >> here's what i would say it's about time. if you really take a look the larger brokerages, the

consequences were apparent you also have 1.5 billion of anticipated revenue going back in the hands of every day investors. so we at dough, since our inception we believed in commission free stock trading. we believe that was the best way to engage our community and customers. so we welcome the competition, certainly. we'll continue to provide what we do so well which is conte contextualize the marketplace. we were founded on years of expertise. i come from td ameritrade. our team comes from merrell, goldman sachs, we come from across the industry. our parent company led the revolution in lower priesd commissions as well. our continued work in this space, it's not going to stop here and will continue to

innovate for our customers >> victor charles schwab and their established competitors are coming from a position of having large customer balances they have a lot of net interest off of those balances. they have other revenue streams they are falling back on i assume you guys were the mobile app that's offering commission free trading going tap some of those revenue screens whether selling the order flow or lending on margin and things like that is that going enough to create a real business for you? >> look. here's what i would say. i think the benefit of what transpired over the last couple of days is brought this idea many of these firms were making 70% to 90% of their overal revenue outside of trading or stock commissions. so there is money to be made or ways to monetize new business models if anything these pricing changes are validation of ours that challenged those

traditional industry models. you'll see things like the stock obviously is now a nearly commoditized asset the value is in the experience, the comprehensive value can offer your users as well as the speed which you can innovate that's what we do at dough we have world class engineers and world class technology team and we'll continue to innovate that our competitors can't keep up with. >> final question. don't know if you own any stock. doe that 33% decline overall in the market value make sense to you >> i think if you take a look at what these commissions meant the home in terms of overall revenue it's fairly in line. what these companies lost in market gap were relatively in line with what those revenues mean to their bottom line. so, i wish all of -- we respect all of our competitors we wish them the best. this week is about celebrate testifyingry day investor because they now get to enjoy

higher returns without paying the fees and that's what we believe in here at dough >> i appreciate you joining us still ahead the home builders rallying near 50% up next find out why recent turmoil in the broader market could be good news for housing stocks >> plus investing in space coming up we'll speak with the ceo of one company make big bets on the final frontier. stay with us announcer: fidelity is redefining value with zero account fees for brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself.

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and i knew... ...she was the one. post a job today at linkedin.com/grow welcome back this week's market volatility weighing on equity investors could the big winner end up being the housing sector diana oleck joins us now with more >> reporter: look home buyers are getting a bonus with falling bond yields causing an unexpected turn around in mortgage rates 30 year fix is down 1.25 percentage points from a year ago. that's about $225 less on a monthly payment on a $300,000 mortgage and that's real money for today's cash-strapped buyers

especially first time buyers lower rates are boosting the builders we saw a nice beat from lennard. lower interest rates is the driver back to you. >> thank you still ahead, the countdown to jobs it's on. we'll tell you what to watch for. >> coming up on "fast money," bank of america's head rate strategist says the fed will disappoint the market. he'll explain that

>> during the break explained what that first one meant to me. finish us off now. >> "mean girls" day. october 3rd is "mean girls" day. value of twen and even the daughters is the effect. one of the big questions is how much weakness in the economy overseas might be felt in the u.s. this chart suggests pretty tight linkage. this goes back very far, 1966 is where it starts. even during this cycle, the orange is global gdp and actually has been kind of leading u.s. gdp, which is in blue right here.

last time we saw something like this, of course, 2011 and '12 and then in 2016 the question here is what is an acceptable outcome of this downturn for the u.s. markets. if we stop around here in the 1.5% range, slightly slower than we've been this year perhaps that's what the market is sniffing out it's an indication the u.s. economy can go in the other direction from the rest of the world is a long shot >> all right mike santoli, thank you. still ahead, betting big on space. we'll hear from one ceo of a company with something that's out-of-this-world investments. >> don't mess our exclusive sit down -- i really can't wait. can you? loretta mester, 4:00 p.m. tomorrow right here on the "closing bell"

announcer: fidelity is redefining value with zero account fees for brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero here, hello! starts with -hi!mple... how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out.

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bell". amid recent market volatility could investing in space be the new frontier that is the space angels space holding company that launched last month is making joining us now to discuss is the ceo of space holding tell bus this investment vehicle you set up and type of investments your targeting >> sure. so if you look at space, both morgan stanley and goldman sachs has a multi-trillion market by 2040 but if you look at the landscape there are some really large players but many, many smaller players. it's very fragmented the industry lacks scale what we believe to be true is traditional private equity models that would aggregate market share aren't well suited for space. the time horizons are long and also you want operational integration between these

companies. so we think an operating company, a holding company, is best suited for this industry. >> there's hundreds of space start ups that's mushrooming up here not justin u.s. but around the world. where u.s. where do you see the greatest taunts and are you targeting certain names. >> certainly in the u.s. and european region. basically the main client base as you would expect is the federal government, both in the case of europe and in the u.s. but there is another huge tailwind here in the u.s., which is the department of defense and the newly launched stays space force as well pl i would expect that client base to drive a lot of purchasing decisions. what's nice about the industry is that a lot of the revenue is annuity based. it's contractual over years and easier to capitalize. >> yeah, i'm glad you brought up the department of defense. we had this 70th anniversary in china earlier this week. and this military parade that

was put on quite a number of new weapon systems that were displayed that there is suspicion they were being developed but this is the fires time out in the open including the hypersonic ballistic nuclear missile that could reach the u.s. in 30 minutes. what does that do in terms of investment and development of new technologies since, if you want to counter something like hypersonic weapon you have to do more infrastructure in space one of the biggest sectors right now is earth observation it used to be those would be optical satellites measuring license plates, famous surveillance optical satellites but that mushroomed into expect tra. infrared synthetic aperture radar looking under clouds i would expect the earth observation is a bull shall industry and with national security implications as well.

>> in terms of commercial space, you can make the argument we're getting a first kind of key test of public market investor appetite when virgin galactic merges with social capital and trades here on the stock exchange how closely are you watching that. >> very closely. one of reasons we think voyageur space hold somethings the right mold is investor doesn't have an opportunity to invest in space unless you're a angel investor and writing checks for $50,000 or 00,000 it's difficult for typical retail investor to get invested these are media to large size companies included in the etfs i think the that richard is do with so social examine capital is and voyageur aaspiration is to be publicly traded as well for similar reasons. >> i want to get at the size of the tune as you characterize it, $2.7 trillion, that's 10 or 15%

of the u.s. economy right now. you're saying that's how big the space sector will be in 25 years. are we talking mostly about, though, the defense applications and some of the commercial travel and things like that? just exactly what kind of a play is it? >> there is a lot of growth sectors. would be woun would be the earth observation we talked about. there is the hunl analytics and data play. with the earth observation and the capitalization for things like, you know, data sciences, and predicting what will happen and things like the supply chain, huge value creation there. one way to think about it. we have a $75 trillion global economy. by having better ubiquitous persist information on the earth can you make the global economy three% or four% more efficient i think you can. that's two or $3 trillion of value creation there you have of course, launchening things to space. you have the moon mission coming

in 2024. and a lot of other opportunities that are going to create a lot of value going forward >> yeah, i suspect we're talking a lot more about space and this new space economy that we see emerging right now in the coming years, coming months and years dillon tailor we tresht appreciate you coming on to break it down for us thanks. >> thanks. >> up next the walds look ahead, the key things every investor needs to watch headingnto ia new trading day. that's when "closing bell" comes back - [spokesman] if you've tried college but never finished,

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>> announcer: jobs jobs report, investor insight, a key read on the state of our economy now the smart moves to reset strategy squawk on the street, 9:00 a.m. eastern. ♪ ♪ alive again ♪ ♪ you make me feel ♪ like i'm alive again ♪ things get better if you stay around longer i guess let's get a check on shares of costco the shares pairing losses after revenues came in below expect aches more or less flat. we'll see how -- well the call goes and of course we how we trade tomorrow when there is more volume. >> speaking of tomorrow, big focus will be the september jobs report it's expected to show 145,000

jobs were added last month the report is going to be key for investors in light of the recent weak data on consumption spending, construction investment and capital goods manufacturing. of course wages, mike, are going to be an influence as well. >> yeah, i think we're in a zone right now where the market craves a stronger number, or at least as expected number it's not the old game of let's hope for weak data so that the fed is more aggressive in easing because i think the market already feels like the fed's getting there. and you'd rather see the economy holds together especially on the labor front which is the core of the strength at this point. >> and we have a new addition to the "closing bell" family. sarah eisen gave birth to her second son harrison james levin bren at 6 pounds, 15 ounces. mom and baby doing well. we send best wishes to sarah appear dad matt. and tomorrow she will be watching the lort o midwester interview. >> no doubt.

>> as a matter of fact she sent me a photo of the baby watching cnbc this afternoon. >> no kidding. >> i don't know if it put him back to sleep. >> oh. >> certainly sarah should be getting rest welcome to baby harrison. >> a beautiful picture. >> absolutely. >> very happy for them. >> think they'll have questions for messter. she was disappointed not to be part of the hugh johnson interview from pepsico. >> we had a beat. >> for whatever period of time she is going to be out but of course welcome back the mother of two a lot going on as we all know of course. >> absolutely. >> we had some kids too. mike any fiej thoughts from you here >> this market as i said it definitely skrafs craves a strong number tomorrow the bond market is the tell. and the 2-year note down to 2.3. pretty much showed the fed is back in the game for a couple of cuts according to the market. >> yeah, the dow finished up 122

points after being down as many as 33537 similar move for the s&p finishing up 0.8%. see what tomorrow brings. >> that does it for the "closing bell." >> "fast money" begins right now. life from the nasdaq market site overlooking new york city times square this is "fast money. i'm melissa loop trade remembers carter werth karen finerman brian kelly and tim seymour. the man called the melt dwun is back the chart master where he sees it headed from here. plus vold mork sent tumbling and why investors in consequence speculation feeling the hang overnothing to do with the booze. beginning with the mother of all countdown to clocks. not the countdown for fed or trade talks. the countdown to jobs, the monthly payroll numbers hits in just over 15 hours from now.